Comcast, the media giant behind shows like “Saturday Night Live” and “The Office,” revealed plans to split up its network family. On November 20, the company announced intentions to spin off several high-profile television channels, including MSNBC, CNBC, and the USA Network, into a separate entity.
The move isn’t simply another instance of corporate reorganization. The nascent company, tentatively titled “SpinCo,” will assume control of channels reaching 70 million households across the U.S. and generating annual revenues of $7 billion.
The division isn’t confined to news networks. Entertainment channels such as USA, Oxygen, E!, SYFY, and the Golf Channel are also slated to join the new entity. Additionally, popular websites Fandango and Rotten Tomatoes, which are frequented by millions for movie reviews and ticket purchases, will be part of the move.
Mark Lazarus, currently serving as the chairman of NBCUniversal Media Group, is set to become the CEO of the new media conglomerate. Anand Kini will take on the roles of CFO and COO, overseeing the company’s financial and operational aspects.
Meanwhile, the original NBCUniversal will retain several key assets. These include the Peacock streaming service, NBC’s broadcast network, its sports division, and news operation, as well as the Bravo channel. The company will also continue to own its theme parks and film studios.
The restructuring has led to a reshuffling of leadership roles. Donna Langley has been promoted to the position of chairperson for entertainment and studios, while Matt Strauss has been appointed as chairman of NBCUniversal Media Group, responsible for Direct-To-Consumer, International Networks, NBC Sports, and other business operations. Cesar Conde will continue to head the NBCUniversal News Group.
Underneath the surface, this decision mirrors the larger industry trend of transitioning from traditional cable TV to streaming services. Although SpinCo will start with a strong financial base and the liberty to pursue its own ventures, it enters a media market where viewers are increasingly choosing to cut their cable subscriptions.
Comcast’s chairman Brian Roberts will retain a measure of control over the new company, holding onto one-third of the voting power. The entire separation process, subject to regulatory approvals and other standard procedures, is expected to take about a year.
For Comcast, this separation is anticipated to enhance revenue growth without incurring additional debt. The newly formed company will begin its journey with substantial financial resources and the agility to navigate and adapt to the rapidly shifting media landscape.